$100 looks like a new bottom for oil prices

While the oil community was discussing how long it would take for oil prices to hit $100 a barrel earlier, Saad Rahim, chief economist at Trafigura, noted that it would be better to see that number as a new bottom for the
market.
His remarks have come to the foresee
.

Russia's attack on Ukraine has raised alarms that critical oil and gas supplies could be disrupted by war or Western sanctions, pushing Brent crude to $
105 a barrel.
Traders are now waiting to figure out how long the conflict will last and how energy-consuming countries will respond
.

The International Energy Agency (IEA), which is responsible for the deployment of emergency reserves, said it was monitoring the progress
of the situation with "growing concern.
" Meanwhile, the Biden administration has been urging its allies in Saudi Arabia to speed up the OPEC+ alliance's production increase
.

Riyadh has so far rejected this pressure, arguing that merely geopolitical developments in the absence of supply disruptions do not justify its intervention
.
The country may also be enjoying triple-digit oil prices
in the wake of the economic shock of the pandemic.
Other members of the OPEC+ Union will have difficulty increasing production even if they so wish
.

The IEA looks like a more promising source of supply response to curb oil price gains: Member states like the United States and Japan, which used reserves last year amid rising crude prices, now have more convincing reasons for urgent action
.

But even if one or both of these organizations act, the tight global crude oil market caused by strong demand and broad supply constraints will allow prices to be well supported
.
If you add to that the protracted war that one of the world's largest energy producers is in trouble, Trafigura's claim that oil prices will remain at the $100 level could come true
.